Calls were made today for an inquiry into the £11 million sale of the Lake Vyrnwy estate.

Current owner Severn Trent has said water firm United Utilities and RSPB Cymru are its preferred bidders, disappointing Llanwddyn residents who hoped local businessman Rhys Jones would win the battle for the land.

But Montgomeryshire AM Russell George said he has talked to fellow politicians who were concer-ned about the proposed deal.

The deal is described as the biggest of its kind ever in England and Wales.

Mr George said the proposal was “highly unusual” as it involved the sale of the community of Llanwddyn and said an inquiry should be set up to look at the sale implications. He said fellow members of the Welsh Assembly’s environmental and sustainability committee were keen to take a look at the deal.

He said: “I have been in discussions with Lord Elis-Thomas, chair of the committee, about a potential inquiry.

“There does seem a consensus and an appetite among the committee members for an inquiry. I don’t know what form that inquiry will take because we are still looking at the details but the sale is highly unusual because it involves the sale of a whole community.”

Although Severn Trent Water has ownership of the reservoir it is United Utilities which uses the water, taking it via pipes or aqueducts to Liverpool. The proposed deal would see Severn Trent retain the reservoir in the lease agreement.

Residents of Llanwddyn, which is part of the estate, were hoping Bala businessman Rhys Jones, who had promised to invest in the area, would win the deal.

They have complained jobs had gone in the last 20 years and were hopeful Mr Jones would bring investment to keep young people in the area.

Severn Trent said it and the preferred bidders would now enter into a three month statutory consultation with Countryside Council for Wales.

By Iain St John